Stephen Carraway pleads guilty to conspiracy, money laundering

EAST ST. LOUIS, Ill. (KSDK) - A Cahokia, Illinois man pleaded guilty Wednesday to conspiracy to defraud the City of East St. Louis' Demolition Program and to money laundering.

Stephen R. Wigginton, United States Attorney for the Southern District of Illinois says 50-year-old Stephen L. Carraway owned and operated Steve's Hauling, Inc. in East St. Louis and provided demolition services to the city.

Carraway admitted that in 2010 he made a cash payment in the form of a kickback to a city official to receive an emergency demolition contract.

He said he was told to make the payment and how much to bid to receive the contract. He also admitted to submitting a false certificate of insurance in the proposal because he did not have an existing liability insurance policy.

Carraway faces up to 15 years in prison, three years of supervised release, and a fine up to $500,000.